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HRA Calculator – Free Online Tool

Quick Answer

Calculate HRA (House Rent Allowance) tax exemption for Indian salaried employees with this free HRA calculator from Toolscal. Enter salary and rent details to compute tax savings without signup or downloads.

Calculate House Rent Allowance (HRA) tax exemption for salaried employees in India

What is HRA Calculator? An HRA calculator is a free tool by Toolscal for calculating House Rent Allowance tax exemption in India. HRA exemption is the minimum of: actual HRA received, rent minus 10% of basic salary, or 50% (metro) / 40% (non-metro) of basic salary.

Metro cities: Mumbai, Delhi, Kolkata, Chennai

HRA Exemption Calculation

The exemption is minimum of:
1. Actual HRA Received:₹20,000
2. Rent - 10% of Basic:₹10,000
3. 50% of Basic Salary:₹25,000
Monthly HRA Exemption (Tax-Free)
₹10,000
Taxable HRA (Monthly)
₹10,000
Annual Tax Exemption
₹1,20,000

💡 Important Notes

  • • Keep rent receipts/agreement as proof for tax filing
  • • PAN of landlord required if rent exceeds ₹1 lakh/year
  • • Both old and new tax regime allow HRA exemption
  • • Cannot claim HRA if you own the property you live in

How to Use

  1. 1Enter your monthly basic salary
  2. 2Enter monthly HRA received from employer
  3. 3Enter monthly rent paid
  4. 4Select if you live in a metro city
  5. 5View your HRA exemption and taxable amount

Why Use This Tool?

  • Calculate tax-free HRA amount for ITR filing
  • Plan your salary structure for maximum tax savings
  • Determine how much rent to pay for optimal exemption
  • Compare metro vs non-metro HRA benefits
  • Verify HRA calculations in your Form 16

Frequently Asked Questions

What is HRA exemption?

HRA (House Rent Allowance) exemption is a tax benefit for salaried individuals who live in rented accommodation. A portion of HRA received can be claimed as tax-free, reducing your taxable income.

How is HRA exemption calculated?

HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities or 40% for non-metro cities.

Which cities are considered metro for HRA?

Metro cities for HRA calculation are Mumbai, Delhi, Kolkata, and Chennai. All other cities are non-metro and get 40% of basic salary as the limit.

Can I claim HRA if I live with parents?

Yes, you can claim HRA even if you live with parents, provided you pay rent to them and have a rental agreement. Your parents must show this as rental income in their tax returns.

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